Construction Licensses (SBU, SKK, And IUJK)

Written by Dea Amanta Azaria on 06/08/2024
The author’s views are entirely their own and may not always reflect the views of Putranto Alliance.

Introduction

Every individual business entity intending to provide Construction Services is mandated to possess an Individual Business Registration Certificate. This article will delve into the specifics of Business Licensing Certificates, Work Competency Certificates, and Construction Services Business Permits.

Definition

Business Licensing Certificates (SBU)
The document serves as proof of acknowledgment regarding the classification and qualification of a Construction Services business entity's capabilities. This includes the recognition of the competencies of foreign Construction Services business entities. It is valid for 3 (three) years, with the possibility of extension. The document is issued by the Minister through a certification and registration process.

Work Competency Certificate (SKK)
This document is a certification that acknowledges the competence of construction workers, as registered by the Minister. Previously known as Work Skills Certificates (Sertifikat Kompetensi Kerja/SKT) and Work Skills Certificates (Sertifikat Keahlian/SKA), it is valid for 5 (five) years and can also be extended. It requires passing a competency test aligned with the Work Competency Standards registered by the Minister, with the test conducted by a Professional Certification Agency (Lembaga Sertifikasi Profesi/LSP).

Construction Service Business License (IUJK)
The final document is a permit granted to a business entity, allowing it to conduct Construction Services activities. It remains valid as long as the business entity continues its operations. Business entities classified as small, medium, or large receive this document from the Regency/City Regional Government, following statutory provisions.

The Importance

In the construction services sector, obtaining these requirements is very important. Below are the importances of these certifications and licenses:

Legal Compliance
Adhering to the requirements outlined in Law Number 2 Year 2017 ensures that construction businesses operate within the legal framework, thereby avoiding potential legal repercussions.
Market Access
Possession of SBU and IUJK is often a prerequisite for participating in government tenders and large-scale projects. These documents validate a company's qualifications and capabilities, enhancing its competitiveness in the market.

Quality Assurance
The SKK ensures that construction workers possess the necessary skills and competencies, which contribute to the overall quality of construction projects. This is vital for maintaining safety standards and delivering high-quality outcomes.

Consumer Protection
These certifications provide assurance to service users regarding the reliability and professionalism of construction service providers, fostering trust and confidence in the industry.

Professional Development
The process of obtaining SKK encourages continuous professional development among construction workers, ensuring that they remain updated with the latest industry standards and practices.

The Best Time to Do

The optimal timing for obtaining these documents is crucial for ensuring smooth operations within the construction services sector. The following considerations highlight the best times to pursue these certifications and licenses:

Before Project Initiation
It is advisable for construction service providers to secure SBU and IUJK before commencing any projects. This ensures compliance with legal requirements and positions the business favorably for tender opportunities.
During Business Registration
When establishing a new construction business, obtaining an SBU and IUJK should be part of the initial registration process. This proactive approach facilitates immediate access to project opportunities and enhances credibility.
Before Tender Applications
Companies intending to participate in tenders, especially for government contracts or large-scale projects, should ensure that all necessary certifications are in place well in advance of the application deadlines.
Upon Renewal Expiration
As SBU and SKK have specific validity periods (three years for SBU and five years for SKK), businesses should initiate the renewal process at least six months before expiration to avoid lapses in certification.
When Expanding Services
If a construction business plans to expand its services or enter new markets, obtaining the relevant certifications is essential to meet regulatory requirements and demonstrate capability in new areas.

By strategically timing the acquisition of these documents, construction service providers can enhance their operational efficiency and market competitiveness.

Benefits Of Using Professional Service

Obtaining the licenses offers numerous advantages that significantly enhance the operational capabilities and market positioning of construction service providers. The key benefits include:

Increased Credibility
Holding SBU and IUJK enhances a company's reputation, signaling to clients and partners that the business adheres to industry standards and regulatory requirements.
Access to Government Projects
Many government contracts and large-scale projects require bidders to possess valid SBU and IUJK. These certifications open doors to lucrative opportunities that may otherwise be inaccessible.
Competitive Advantage
Companies with SBU and SKK are often favored in tender processes, as these documents demonstrate proven expertise and a commitment to quality, thereby increasing the likelihood of winning contracts.
Enhanced Workforce Competence
The requirement for construction workers to possess SKK ensures that the workforce is skilled and knowledgeable, leading to improved project outcomes and reduced risks associated with unqualified labor.
Legal Protection
Compliance with licensing requirements protects businesses from potential legal issues, fines, and penalties associated with operating without the necessary certifications.
Networking Opportunities
Membership in associations linked to SBU can provide networking opportunities with other industry professionals, fostering collaborations and partnerships that can lead to new business ventures.
Improved Project Management
The process of obtaining these certifications often involves the implementation of quality management systems, which can enhance overall project management practices within the organization.

The Process Of Acquiring Construction Licenses

The process of obtaining the construction business licenses involves several steps, each tailored to the specific requirements of each certification and license. Below is a detailed outline of the procedures for acquiring these essential documents:

How to Obtain SBU:

Registration
Business actors must register through the Online Single Submission System - Risk Base Approach (OSS RBA) and fill in the necessary data for registration, including risk validation for the Construction Services Subsector.
Document Validation
The OSS RBA system will automatically validate the completeness of the submitted documents. Upon completion, it will issue a Business Identification Number (NIB) and a Standard Certificate (Sertifikat Standar/SS) with an unverified status.
Application Submission
Business actors must submit applications supporting their business activities through the OSS RBA system, which is connected to the Integrated Construction Services Information System (SIJK).
Data Completion
Required data and documents for business entity certification must be completed through the Integrated SIJK. Business actors must also select relevant associations and Business Entity Certification Institution (LSBU).
Assessment
LSBU will check the completeness of the submitted data and documents. After this, LSBU will issue bills for fees and initiate the certification process upon payment confirmation.
Decision Determination
An assessor will be assigned to evaluate the business entity. LSBU will issue a decision based on the assessor's report and recommendations.
Issuance
Upon successful completion of the assessment and fulfillment of requirements, the license will be recorded in the Integrated SIJK and notified to the OSS RBA.

How to Obtain SKK:

Application Registration
Applicants must register on the perizinan.pu.go.id website, inputting the necessary application data and selecting an LSP.
Verification
The application is forwarded to the Indonesian Construction System Information (SIKI) for verification and validation by the LSP admin.
Pre-assessment
If the application is complete, it proceeds to the pre-assessment stage, where the applicant pays the applicable fees.
Assessment Process
The Ministry of PUPR will issue a decree following the assessment report and recommendations.
Issuance
The license will be issued as an E-Certificate, with the LSP providing information to the applicant.

How to Obtain IUJK:

OSS RBA Registration
Business entities must register through the OSS RBA system to obtain a NIB.
Commitment Issuance
The document is issued based on the business entity's commitment to fulfilling the requirements.
Verification of Commitments
If compliance with the respective commitments is verified, which includes the ownership of the previous licenses.
Issuance
Upon successful verification and validation of compliance with the commitments of the agency, the IUJK will be issued to the business entity through the OSS RBA system.

This structured process ensures that construction service providers meet all requirements, thereby facilitating their legal operation within the construction industry.

How We Can Help

Putranto Alliance is committed to assisting clients—both local and foreign—in navigating the complexities of obtaining the construction business licenses. The following services are offered to ensure that clients meet their business objectives efficiently and in compliance with Indonesian laws:

Legal Consultation: Providing expert legal opinions on the requirements and implications of obtaining the documents, ensuring clients understand the legal landscape.
Document Preparation: Assisting in the preparation of all necessary documentation required for the application processes, ensuring completeness and compliance with regulatory standards.
Coordination with Authorities: Facilitating communication and coordination with relevant government agencies, including the Ministry of Public Works and Public Housing, to streamline the application process.
Application Submission: Managing the submission of applications through the OSS RBA system and ensuring that all required data is accurately entered and validated.
Problem-Solving: Offering solutions and strategies for clients facing challenges in meeting the licensing requirements, including addressing any deficiencies in documentation or compliance.
Ongoing Support: Providing continuous support throughout the certification process, including follow-ups with authorities and updates on application status.

With a team of experienced professionals, Putranto Alliance is well-equipped to guide clients through the intricacies of obtaining required documents, ensuring a smooth and efficient process.

FAQs

Can an expired document still be used for tender requirements?

Any document which validity period has expired must be renewed immediately by submitting the fulfillment of PB UMKU requirements on the OSS RBA System, which is connected to the Integrated SIJK.

Can the license that is currently in the middle of the application process be used for tender requirements?

Documents that are in the middle of the application process for certification extensions or changes, submitted before December 7, 2021, are considered valid until July 31, 2022. These can be used for tender requirements by attaching proof of the renewal process status from the applicant’s account dashboard obtained through the SIKI Searching page.

How to prove the legitimacy of the license?

Its legitimacy can be verified by scanning the QR Code that contains the respective identification numbers available on the Integrated SIJK.

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